K. Venkataswami, the First Assistant Government Pleader (Tax) in W.P. Nos. 1316 of 1969 and 1167 of 1970 and for respondent No. 1 in W.P. No. 1240 of 1971, ;Habibullah Basha, Adv. for respondent No.

Excerpt: - .....those transactions though put through the madras office, will come under the category of inter-state sales falling under section 3(a) of the central sales tax act.25. however, in some transactions the madras office of the buyer-company seems to have taken delivery of the goods. some of the letters by the assessee addressed to the buyer-company show this. the assessee's letters dated 11th may, 1965, and 15th may, 1965, addressed to the buyer's office at new delhi and jullundur respectively are as follows:we thank you for your order no. 196 of 7th may, 1965, calling for the supply of 200 kgs. 64-66-18-slab.we are making necessary arrangements to have your requirements manufactured and shall make them available to your madras office with the least possible delay.we thank you for your.....

Judgment:ORDER

182 MICK GOODS SOON.

The above message when decoded should read as 'Our Order No. 182- despatch at once by motor lorry goods-Confirm as order is urgent.' We hope you would have by now arranged for the despatch of above materials. Kindly confirm.

22. This letter indicates that the seller is obliged to despatch the goods as per the terms of the original order. Another letter dated 28th April, 1965, written by the assessee to the office of the buyer-company at Jullundur is as follows :

We are pleased to advise you that we have already despatched your order No. 28 in full through M/s. New Howrah Transport Co. vide their way bill 1393 of 24th April, 1965. In this connection we confirm having wired you on 24th April as per copy enclosed.

Arrangements are being made with our factory to manufacture your requirements and shall make them available to your Madras office according to your delivery schedule.

We note that you require 40-46-10 and 42-50-12 size very urgently. Accordingly, the same will be despatched in a week's time.

Assuring you of our best services always.

24. These letters show that the assessee as seller has agreed to despatch the goods. Though there was some correspondence regarding freight charges, the assessee ultimately agreed to bear the freight charges incurred in despatching the goods to their destinations outside the State. Those transactions though put through the Madras office, will come under the category of inter-State sales falling under Section 3(a) of the Central Sales Tax Act.

25. However, in some transactions the Madras office of the buyer-company seems to have taken delivery of the goods. Some of the letters by the assessee addressed to the buyer-company show this. The assessee's letters dated 11th May, 1965, and 15th May, 1965, addressed to the buyer's office at New Delhi and Jullundur respectively are as follows:

We thank you for your order No. 196 of 7th May, 1965, calling for the supply of 200 kgs. 64-66-18-slab.

We are making necessary arrangements to have your requirements manufactured and shall make them available to your Madras office with the least possible delay.

Necessary arrangements are being made with our factory to have your requirements manufactured and we hope to make them available to your Madras office with the least possible delay.

26. It is possible in these 'cases to say that the buyer's office at Madras has taken delivery of the goods and that the bargain between the parties was to effect delivery at Madras.

27. Therefore, in our view, the transactions of sale in respect of which the goods had been delivered to the buyer's office at Madras could not be treated as inter-State sales, but the transactions in respect of which the assessee itself had moved the goods from this State to the destinations outside the State on the orders placed by the buyer-company, should be treated as inter-State sales coming under Section 3(a) of the Central Sales Tax Act. But the assessing authority has not made any distinction between the two types of transactions. It proceeded to treat all the transactions alike. We have to, therefore, quash the assessments on this turnover with a direction that the assessing authority may determine the turnover of such transactions in respect of which the goods have been despatched by the assessee to destinations outside the State in pursuance of the orders placed by the buyer and charge them to tax under Section 3(a) of the Central Sales Tax Act.

28. The result is, the orders impugned herein are quashed, with a direction to the respondent to determine in respect of each of the years, the transactions wherein there is numerical similarity between the stock transfer and the ultimate delivery to the buyer outside the State, as also the transactions wherein the assessee has despatched the goods to places outside the State under the orders of Tyresoles Concessionaries (P.) Ltd., and assess them as inter-State sales under the Central Sales Tax Act. There will, however, be no orders as to costs.